IDEAS home Printed from https://ideas.repec.org/a/kap/asiapa/v31y2014i4p925-947.html
   My bibliography  Save this article

Corporate social responsibility, firm reputation, and firm performance: The role of ethical leadership

Author

Listed:
  • Yan Zhu
  • Li-Yun Sun
  • Alicia Leung

Abstract

This study investigated the antecedents and outcomes of corporate social responsibility (CSR) and the moderating effects of ethical leadership. We collected two-wave, temporally lagged data from two sources (general and vice-general managers) in 199 tourism firms (hotels and travel agencies) in southeast China. We have two major findings. First, ethical leadership moderated its own indirect effect on firm reputation via CSR. It had an indirect and positive effect on firm reputation through CSR when ethical leadership was strong but not when it was weak. Second, ethical leadership also moderated the indirect effect of CSR on firm performance via firm reputation. There was an indirect and positive effect of CSR when ethical leadership was strong but not when ethical leadership was weak. This study highlights the role of ethical leadership in linking the antecedents and outcomes of CSR, and provides support for the stakeholder theory. Copyright Springer Science+Business Media New York 2014

Suggested Citation

  • Yan Zhu & Li-Yun Sun & Alicia Leung, 2014. "Corporate social responsibility, firm reputation, and firm performance: The role of ethical leadership," Asia Pacific Journal of Management, Springer, vol. 31(4), pages 925-947, December.
  • Handle: RePEc:kap:asiapa:v:31:y:2014:i:4:p:925-947
    DOI: 10.1007/s10490-013-9369-1
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/s10490-013-9369-1
    Download Restriction: Access to full text is restricted to subscribers.

    File URL: https://libkey.io/10.1007/s10490-013-9369-1?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Alan Muller & Ans Kolk, 2009. "CSR Performance in Emerging Markets Evidence from Mexico," Journal of Business Ethics, Springer, vol. 85(2), pages 325-337, April.
    2. Isabelle Maignan & David A Ralston, 2002. "Corporate Social Responsibility in Europe and the U.S.: Insights from Businesses' Self-presentations," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 33(3), pages 497-514, September.
    3. James Avey & Tara Wernsing & Michael Palanski, 2012. "Exploring the Process of Ethical Leadership: The Mediating Role of Employee Voice and Psychological Ownership," Journal of Business Ethics, Springer, vol. 107(1), pages 21-34, April.
    4. Carroll, Archie B., 2000. "Ethical Challenges for Business in the New Millennium: Corporate Social Responsibility and Models of Management Morality," Business Ethics Quarterly, Cambridge University Press, vol. 10(1), pages 33-42, January.
    5. Charlotte Karam & David Ralston & Carolyn Egri & Arif Butt & Narasimhan Srinivasan & Ping Fu & Chay Lee & Yong-lin Moon & Yongjuan Li & Mahfooz Ansari & Christine Kuo & Vu Hung & Andre Pekerti & Phili, 2013. "Perceptions of the ethicality of favors at work in Asia: An 11-society assessment," Asia Pacific Journal of Management, Springer, vol. 30(2), pages 373-408, June.
    6. Kevin Groves & Michael LaRocca, 2011. "An Empirical Study of Leader Ethical Values, Transformational and Transactional Leadership, and Follower Attitudes Toward Corporate Social Responsibility," Journal of Business Ethics, Springer, vol. 103(4), pages 511-528, November.
    7. Royston Greenwood & Stan X. Li & Rajshree Prakash & David L. Deephouse, 2005. "Reputation, Diversification, and Organizational Explanations of Performance in Professional Service Firms," Organization Science, INFORMS, vol. 16(6), pages 661-673, December.
    8. Gregory G. Dess & Richard B. Robinson, 1984. "Measuring organizational performance in the absence of objective measures: The case of the privately‐held firm and conglomerate business unit," Strategic Management Journal, Wiley Blackwell, vol. 5(3), pages 265-273, July.
    9. C. Bhattacharya & Daniel Korschun & Sankar Sen, 2009. "Strengthening Stakeholder–Company Relationships Through Mutually Beneficial Corporate Social Responsibility Initiatives," Journal of Business Ethics, Springer, vol. 85(2), pages 257-272, April.
    10. Linda Sama & Victoria Shoaf, 2008. "Ethical Leadership for the Professions: Fostering a Moral Community," Journal of Business Ethics, Springer, vol. 78(1), pages 39-46, March.
    11. Thomas Maak, 2007. "Responsible Leadership, Stakeholder Engagement, and the Emergence of Social Capital," Journal of Business Ethics, Springer, vol. 74(4), pages 329-343, September.
    12. Supriti Mishra & Damodar Suar, 2010. "Does Corporate Social Responsibility Influence Firm Performance of Indian Companies?," Journal of Business Ethics, Springer, vol. 95(4), pages 571-601, September.
    13. Tony Simons, 2002. "Behavioral Integrity: The Perceived Alignment Between Managers' Words and Deeds as a Research Focus," Organization Science, INFORMS, vol. 13(1), pages 18-35, February.
    14. Teoh, Siew Hong & Welch, Ivo & Wazzan, C Paul, 1999. "The Effect of Socially Activist Investment Policies on the Financial Markets: Evidence from the South African Boycott," The Journal of Business, University of Chicago Press, vol. 72(1), pages 35-89, January.
    15. Alfred Marcus, 1989. "The deterrent to dubious corporate behavior: Profitability, probability and safety recalls," Strategic Management Journal, Wiley Blackwell, vol. 10(3), pages 233-250, May.
    16. K. Kacmar & Martha Andrews & Kenneth Harris & Bennett Tepper, 2013. "Ethical Leadership and Subordinate Outcomes: The Mediating Role of Organizational Politics and the Moderating Role of Political Skill," Journal of Business Ethics, Springer, vol. 115(1), pages 33-44, June.
    17. Irene Chow & Stephen Teo & Irene Chew, 2013. "HRM systems and firm performance: The mediation role of strategic orientation," Asia Pacific Journal of Management, Springer, vol. 30(1), pages 53-72, March.
    18. Andrea Stanaland & May Lwin & Patrick Murphy, 2011. "Consumer Perceptions of the Antecedents and Consequences of Corporate Social Responsibility," Journal of Business Ethics, Springer, vol. 102(1), pages 47-55, August.
    19. Iain M. Cockburn & Rebecca M. Henderson & Scott Stern, 2000. "Untangling the origins of competitive advantage," Strategic Management Journal, Wiley Blackwell, vol. 21(10‐11), pages 1123-1145, October.
    20. Kangtao Ye & Ran Zhang, 2011. "Do Lenders Value Corporate Social Responsibility? Evidence from China," Journal of Business Ethics, Springer, vol. 104(2), pages 197-206, December.
    21. K S Law & D K Tse & N Zhou, 2003. "Does human resource management matter in a transitional economy? China as an example," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 34(3), pages 255-265, May.
    22. Peter Wright & Stephen P. Ferris, 1997. "Agency Conflict And Corporate Strategy: The Effect Of Divestment On Corporate Value," Strategic Management Journal, Wiley Blackwell, vol. 18(1), pages 77-83, January.
    23. Abagail McWilliams & Donald S. Siegel & Patrick M. Wright, 2006. "Corporate Social Responsibility: Strategic Implications," Journal of Management Studies, Wiley Blackwell, vol. 43(1), pages 1-18, January.
    24. Evans, Martin G., 1985. "A Monte Carlo study of the effects of correlated method variance in moderated multiple regression analysis," Organizational Behavior and Human Decision Processes, Elsevier, vol. 36(3), pages 305-323, December.
    25. Brickley, James A. & Smith Jr., Clifford W. & Zimmerman, Jerold L., 2002. "Business ethics and organizational architecture," Journal of Banking & Finance, Elsevier, vol. 26(9), pages 1821-1835, September.
    26. K. O’Shaughnessy & Eric Gedajlovic & Patrick Reinmoeller, 2007. "The influence of firm, industry and network on the corporate social performance of Japanese firms," Asia Pacific Journal of Management, Springer, vol. 24(3), pages 283-303, September.
    27. William Shafer & Kyoko Fukukawa & Grace Lee, 2007. "Values and the Perceived Importance of Ethics and Social Responsibility: The U.S. versus China," Journal of Business Ethics, Springer, vol. 70(3), pages 265-284, February.
    28. Chi-Shiun Lai & Chih-Jen Chiu & Chin-Fang Yang & Da-Chang Pai, 2010. "The Effects of Corporate Social Responsibility on Brand Performance: The Mediating Effect of Industrial Brand Equity and Corporate Reputation," Journal of Business Ethics, Springer, vol. 95(3), pages 457-469, September.
    29. Gu, Huimin & Ryan, Chris & Bin, Li & Wei, Gao, 2013. "Political connections, guanxi and adoption of CSR policies in the Chinese hotel industry: Is there a link?," Tourism Management, Elsevier, vol. 34(C), pages 231-235.
    30. Phillips, Robert & Freeman, R. Edward & Wicks, Andrew C., 2003. "What Stakeholder Theory is Not," Business Ethics Quarterly, Cambridge University Press, vol. 13(4), pages 479-502, October.
    31. Robert Liden, 2012. "Leadership research in Asia: A brief assessment and suggestions for the future," Asia Pacific Journal of Management, Springer, vol. 29(2), pages 205-212, June.
    32. Thomas Maak & Nicola M. Pless, 2006. "Responsible Leadership in a Stakeholder Society – A Relational Perspective," Journal of Business Ethics, Springer, vol. 66(1), pages 99-115, June.
    33. Maobin Wang & Chun Qiu & Dongmin Kong, 2011. "Corporate Social Responsibility, Investor Behaviors, and Stock Market Returns: Evidence from a Natural Experiment in China," Journal of Business Ethics, Springer, vol. 101(1), pages 127-141, June.
    34. Daisuke Okamoto, 2009. "Social Relationship of a Firm and the CSP–CFP Relationship in Japan: Using Artificial Neural Networks," Journal of Business Ethics, Springer, vol. 87(1), pages 117-132, June.
    35. Walumbwa, Fred O. & Mayer, David M. & Wang, Peng & Wang, Hui & Workman, Kristina & Christensen, Amanda L., 2011. "Linking ethical leadership to employee performance: The roles of leader-member exchange, self-efficacy, and organizational identification," Organizational Behavior and Human Decision Processes, Elsevier, vol. 115(2), pages 204-213, July.
    36. Joyce Tsoi, 2010. "Stakeholders’ Perceptions and Future Scenarios to Improve Corporate Social Responsibility in Hong Kong and Mainland China," Journal of Business Ethics, Springer, vol. 91(3), pages 391-404, February.
    37. David A. Waldman & Donald S. Siegel & Mansour Javidan, 2006. "Components of CEO Transformational Leadership and Corporate Social Responsibility," Journal of Management Studies, Wiley Blackwell, vol. 43(8), pages 1703-1725, December.
    38. Vitell, Scott J. & Paolillo, Joseph G. P. & Thomas, James L., 2003. "The Perceived Role of Ethics and Social Responsibility: A Study of Marketing Professionals," Business Ethics Quarterly, Cambridge University Press, vol. 13(1), pages 63-86, January.
    39. Gang Wang & Xu Jiang & Chang-Hong Yuan & Ya-Qun Yi, 2013. "Managerial ties and firm performance in an emerging economy: Tests of the mediating and moderating effects," Asia Pacific Journal of Management, Springer, vol. 30(2), pages 537-559, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Saeidi, Sayedeh Parastoo & Sofian, Saudah & Saeidi, Parvaneh & Saeidi, Sayyedeh Parisa & Saaeidi, Seyyed Alireza, 2015. "How does corporate social responsibility contribute to firm financial performance? The mediating role of competitive advantage, reputation, and customer satisfaction," Journal of Business Research, Elsevier, vol. 68(2), pages 341-350.
    2. Woo Sung Kim & Kunsu Park & Sang Hoon Lee, 2018. "Corporate Social Responsibility, Ownership Structure, and Firm Value: Evidence from Korea," Sustainability, MDPI, vol. 10(7), pages 1-20, July.
    3. Ovidiu-Ioan Moisescu, 2015. "Adopting and Implementing CSR Policies in Travel Agency Business: The Case of Romania," Tržište/Market, Faculty of Economics and Business, University of Zagreb, vol. 27(2), pages 203-220.
    4. Abdelmajid EL WAATMANI, 2018. "Industrial clusters and promotion of CSR: the case of developing countries," Journal of Academic Finance, RED research unit, university of Gabes, Tunisia, vol. 9(2), pages 69-80, December.
    5. K. V. James & R. G. Priyadarshini, 2021. "Responsible Leadership: A New Paradigm for Organizational Sustainability," Management and Labour Studies, XLRI Jamshedpur, School of Business Management & Human Resources, vol. 46(4), pages 452-470, November.
    6. Abdelmajid EL WAATMANI, 2018. "Industrial clusters and promotion of CSR: the case of developing countries," Journal of Academic Finance, RED research unit, university of Gabes, Tunisia, vol. 9(2), pages 69-80, December.
    7. Francesco Perrini & Angeloantonio Russo & Antonio Tencati & Clodia Vurro, 2011. "Deconstructing the Relationship Between Corporate Social and Financial Performance," Journal of Business Ethics, Springer, vol. 102(1), pages 59-76, March.
    8. Min Zhang & Biying Jin & G. Alan Wang & Thong Ngee Goh & Zhen He, 2016. "A Study of Key Success Factors of Service Enterprises in China," Journal of Business Ethics, Springer, vol. 134(1), pages 1-14, March.
    9. Gangi, Francesco & Meles, Antonio & Monferrà, Stefano & Mustilli, Mario, 2020. "Does corporate social responsibility help the survivorship of SMEs and large firms?," Global Finance Journal, Elsevier, vol. 43(C).
    10. Kunapatarawong, Rasi & Martínez Ros, Ester, 2013. "Influences of institutional pressures on corporate social responsibility attitude and corporate social responsibility outcomes," DEE - Working Papers. Business Economics. WB wb130301, Universidad Carlos III de Madrid. Departamento de Economía de la Empresa.
    11. Chi, Wuchun & Wu, Shing-Jen & Zheng, Zhen, 2020. "Determinants and consequences of voluntary corporate social responsibility disclosure: Evidence from private firms," The British Accounting Review, Elsevier, vol. 52(6).
    12. Min-Seong Kim & Brijesh Thapa, 2018. "Relationship of Ethical Leadership, Corporate Social Responsibility and Organizational Performance," Sustainability, MDPI, vol. 10(2), pages 1-16, February.
    13. Kong, Dongmin, 2012. "Does corporate social responsibility matter in the food industry? Evidence from a nature experiment in China," Food Policy, Elsevier, vol. 37(3), pages 323-334.
    14. Muzhar Javed & Muhammad Amir Rashid & Ghulam Hussain & Hafiz Yasir Ali, 2020. "The effects of corporate social responsibility on corporate reputation and firm financial performance: Moderating role of responsible leadership," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(3), pages 1395-1409, May.
    15. Carla Freire & Joana Gonçalves, 2021. "The Relationship between Responsible Leadership and Organizational Citizenship Behavior in the Hospitality Industry," Sustainability, MDPI, vol. 13(9), pages 1-16, April.
    16. Yidong Tu & Xinxin Lu, 2016. "Do Ethical Leaders Give Followers the Confidence to Go the Extra Mile? The Moderating Role of Intrinsic Motivation," Journal of Business Ethics, Springer, vol. 135(1), pages 129-144, April.
    17. Mahfuja Malik, 2015. "Value-Enhancing Capabilities of CSR: A Brief Review of Contemporary Literature," Journal of Business Ethics, Springer, vol. 127(2), pages 419-438, March.
    18. E. Arikan & D. Kantur & C. Maden & E. Telci, 2016. "Investigating the mediating role of corporate reputation on the relationship between corporate social responsibility and multiple stakeholder outcomes," Quality & Quantity: International Journal of Methodology, Springer, vol. 50(1), pages 129-149, January.
    19. Rajesh Sharma & Vranda Jain, 2019. "CSR, Trust, Brand Loyalty and Brand Equity: Empirical Evidences from Sportswear Industry in the NCR Region of India," Metamorphosis: A Journal of Management Research, , vol. 18(1), pages 57-67, June.
    20. Khalid M. Al-Shuaibi, 2016. "A Structural Equation Model of CSR and Performance: Mediation by Innovation and Productivity," Journal of Management and Sustainability, Canadian Center of Science and Education, vol. 6(2), pages 139-153, June.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:asiapa:v:31:y:2014:i:4:p:925-947. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.